How New York taxes retirement income
New York does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). New York does not tax Social Security. Government pensions (federal, military, NY state/local) are fully exempt. Private pensions and 401(k)/IRA withdrawals are excludable up to $20,000 per year once you turn 59.5; amounts above that are taxed as ordinary income.
Retirement income tax in New York, at a glance
| Income type | Taxed by New York? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | Estate tax (exemption $7,350,000) |
| Avg. property tax rate | 1.24% of home value |
Does New York tax Social Security benefits?
No. New York does not tax Social Security benefits.
Does New York tax pensions and 401(k) or IRA withdrawals?
Partly. New York does not tax Social Security. Government pensions (federal, military, NY state/local) are fully exempt. Private pensions and 401(k)/IRA withdrawals are excludable up to $20,000 per year once you turn 59.5; amounts above that are taxed as ordinary income.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- New York taxation of retirement income (Social Security, pensions, 401(k)/IRA): New York Department of Revenue / Taxation.
- New York estate / inheritance tax: New York tax authority.